ADDITION: Comments by Enbridge, received after deadline, have been added. (10:10 a.m. MST, Jan. 22, 2025)

A new report says Enbridge's plan to build a tunnel for Line 5 between Lake Michigan and Lake Huron is too expensive and unnecessary.

The report from the Institute for Energy Economics and Financial Analysis stated the aging pipeline, which transports crude oil and natural gas liquids from Canada to the U.S., serves fewer customers and is harder to maintain. The report also pointed out the tunnel project will likely cost much more than Enbridge has admitted.

Suzanne Mattei, energy policy analyst at the Institute for Energy Economics and Financial Analysis, was the main author of the report.

"In our report, I would say conservatively, estimated that it would cost at least $500 million before it's through," Mattei reported. "But it could be more. We don't know."

The report noted Enbridge has not publicly confirmed a new cost figure and emphasized Enbridge should reconsider investing in an outdated pipeline, which could prolong the "carbon lock-in" effect, as markets for its products decline.

In response to the report, Enbridge did not comment on the cost figure, but stated it will pay all costs of tunnel construction and ongoing maintenance. Enbridge also said the prolonged regulatory approval process has delayed the process, adding to the cost.

In 2018, Enbridge estimated the project at $500 million but according to the report, by 2022, the company revealed in a corporate earnings call costs had increased to $750 million and rising. Mattei argued aside from the project's high cost, maintaining the 70-year-old pipeline could present further challenges, despite Enbridge's claim the pipe is in excellent condition based on its assessment.

"How true is that when the underwater dual pipeline had the anchor strike in 2018 and the ship's cable snafu in 2020?" Mattei asked.

Another controversy involving the Line 5 project is the tribal claim of trespass. Some Native American tribes in Michigan and Wisconsin have argued the pipeline threatens their sacred lands and water rights, potentially violating protective treaties.

In its statement, Enbridge refers to Line 5 as a "vital energy artery," and argues pipelines are safer for the environment and the climate than rail or shipping oil on the Great Lakes by barges.

West Virginia communities will see increased air pollution with little oversight under a new Trump administration proposal offering presidential exemptions from the Clean Air Act's requirements for hazardous air pollutants.

Sarah Vogel, senior vice president of healthy communities for the Environmental Defense Fund, said the move could affect more than 200 facilities, including 10 in the Mountain State, emitting toxic chemicals such as ethylene oxide and benzene.

"These are well-defined, highly hazardous chemicals, many cancer-causing compounds coming from a number of different industries, including the chemical and petrochemical industry," Vogel outlined.

A new analysis from the Environmental Defense Fund found more than 500 facilities across the U.S. eligible for pollution exemptions. Most are petrochemical manufacturing plants and coal-fired power plants. The Environmental Protection Agency has not made the requests for exemptions publicly available.

Vogel emphasized children and families who have no choice but to breathe the toxic air where they live will suffer the most.

"We're seeing this administration signal to companies that they can just continue to pollute in the name of either a so-called energy emergency or a national security issue," Vogel added.

Nearly 10,000 West Virginia children per year will suffer asthma attacks because of ozone from the oil and gas industry, and in 28 counties residents face higher cancer risks, according to the Clean Air Task Force.

The decades-long decline of Pennsylvania's coal industry could shift in another direction after a series of executive orders by President Donald Trump - although current market trends indicate it's unlikely.

Coal-fired power plants made up just over 16% of U.S. electricity in 2023. That's half what it was a decade ago.

Tom Schuster, director of the Sierra Club of Pennsylvania, said the coal industry is in irreversible decline that executive orders most likely can't change.

He said it's been outpaced by renewable energy, which has now surpassed coal in electricity generation over a 12 month period.

"Unfortunately," said Schuster, "what this order could do is expose people to higher electricity costs by keeping unprofitable plants online longer, and also jeopardize people's health by exempting them from environmental regulations."

The orders direct agencies like the Environmental Protection Agency to ease restrictions on coal, which the president suggests could help meet rising energy demands of manufacturing and AI data centers.

Schuster said these actions are part of broader deregulation, and that Pennsylvanians know the risks of unchecked coal use.

He said in today's market, relying on coal to meet power demands is no longer viable.

One executive order claims mining and burning coal will bring back good-paying jobs, but Schuster said that's unlikely.

He pointed out that coal generated about half of Pennsylvania's electricity 15 years ago, but now makes up only 10% - and he said reopening retired plants isn't economical.

"There's only two conventional coal-fired power plants left in Pennsylvania," said Schuster. "There's a handful of smaller specialty plants that burn coal refuse, but it's a relatively small part of our energy generation today, so I don't think the economic impact in terms of coal-fired generation is going to be that much."

An executive order also aims to boost coal exports. Pennsylvania exports a fair amount of its coal, mainly to China - but the trade war and retaliatory tariffs could stymie that effort.

Environmental groups across Michigan are pushing back after the U.S. Army Corps of Engineers confirmed it will fast-track Enbridge's Line 5 tunnel project without conducting a full environmental review.

Line 5 is a 645-mile pipeline transporting crude oil and natural gas liquids beneath the Straits of Mackinac. Speeding up the project is a response to President Donald Trump's declaration of a "national energy emergency."

Ashley Rudzinksy with the nonprofit Groundwork Center for Resilient Communities said with the federal process fast-tracked, the burden falls more heavily on the state's environmental agency to exercise due diligence. She added state laws require thorough permit reviews and meaningful opportunity for public input.

These laws include the Michigan Public Trust Law and the Submerged Land Act.

Rudzinski says there also are concerns about potential oil spills and threats to treaty rights.

"We have also seen many of our partners in this work, and allies - the six Tribal nations here in Michigan - pull out of continued negotiations with the Army Corps," Rudzinski pointed out. "In my estimation, that is because this process has become a sham."

Enbridge responded in a statement saying in part, "Line 5 is critical energy infrastructure" and it is safe. It went on to say Michigan approved environmental permits and tunnel placement but after nearly five years, the project still awaits a U.S. Army Corps decision on its environmental impact.

Critics of the Line 5 tunnel are urging Gov. Gretchen Whitmer and the Michigan Department of Environment, Great Lakes and Energy to deny the necessary permits.

Rudzinski warned the project may also become a burden on taxpayers.

"Enbridge has petitioned the Federal Energy Regulatory Commission to be able to pass the tunnel construction cost onto their shippers, who ultimately can pass that on to consumers," Rudzinski noted. "That means everyday folks will have to pay more for these products."

Enbridge has consistently stated it will bear the full financial responsibility for the construction, operation and maintenance of the Line 5 tunnel, and taxpayers will not be required to fund any part of the project.


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